The Hindu Editorial : March 26,2019

Dear Aspirants,

Daily Current Affairs (March 26, 2019) like many other sections is inevitable and this also helps to score in the Banking awareness, Static GK and Financial Awareness sections. Remember, Banking Awareness and Static Awareness Questions are asked from the General Awareness section. This will also help you to ride your preparations for the forthcoming exams.

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A) Delaying bad news: on proposed banking reforms

Banks that do not recognise their problems will likely not resolve them

For now, Indian banks burdened by sour loans will not have to admit the true size of their likely losses. On Friday, the Reserve Bank of India postponed the implementation of the Indian Accounting Standards (Ind AS) norms for banks indefinitely, citing the need for amendments to be made by the government to the relevant banking laws. The RBI had initially planned to implement the norms starting April 1, 2018 in order to bring Indian accounting standards in line with international standards, but the Centre’s delay in enacting the necessary amendments had given breathing space for banks for another year. It is believed that the adoption of the accounting standard could cause significant credit losses to banks, which will be forced to prematurely recognise losses on their loans and build up the necessary underlying capital required to overcome the impact of such losses. Under the proposed norms, financial institutions like banks will have to calculate expected credit losses (ECL) on their loans during each reporting period and make necessary adjustments to their profit-and-loss account even before a borrower may default on a certain loan. This is in contrast to the present accounting norms wherein banks incur credit losses in their books only after outstanding loans have been in a state of default over a certain number of days as stated in the rules laid down by the RBI.

Given the losses they would likely have to incur, it is understandable why banks would try to avoid adopting the accounting norms for as long as possible. So the delay in the implementation of the Ind AS norms is not surprising at all. Further, to adjust to the new norms, banks will have to improve their ability to forecast future credit losses with precision. Until this happens, bank earnings could experience volatility. The Central government, which has been trying to bail out public sector banks without carrying out the structural reforms required to clean up balance sheets, might also prefer to delay the enactment of the legislation. For the new norms will cause more outstanding loans to be added to the huge existing pile of bad loans and cause further headaches to the government. According to estimates made by India Ratings & Research, public sector banks would have to make additional provision of over a trillion rupees if the norms are adopted right away. The Centre may not be able to foot the bill, and may instead prefer to help public sector banks to hide the true size of their bad loans. This does not bode well for the health of the banking system as banks that do not recognise their problems might not resolve them.

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B) Twelve years later: on Madras HC’s verdict on ‘Dinakaran’ case

The Madras High Court has prevented a miscarriage of justice in the ‘Dinakaran’ case

It is not often that political hooliganism is punished in a court of law. In cases that result in loss of life, investigation and prosecution tend to become inescapable — but the trials are often derailed because of the nexus between party heavyweights and police officers who lean on witnesses to turn hostile. It is therefore gratifying that the Madras High Court has broken the mould to set aside the perverse acquittal of all those involved in the attack on the Madurai office of Dinakaran, a Tamil daily, in 2007 and sentenced nine of them to life. Three persons were killed due to suffocation after parts of the office were set on fire by a mob owing allegiance to M.K. Alagiri, elder son of M. Karunanidhi and then a powerful Dravida Munnetra Kazhagam leader in the temple city. They were angry over an opinion poll carried in the daily, which is part of the Sun Group of Kalanithi Maran, grandnephew of M. Karunanidhi and brother of former Union Minister Dayanidhi Maran. The poll had claimed that Mr. Alagiri was less popular than his brother M.K. Stalin, who now leads the DMK after Karunanidhi’s death in 2018. While the initial reaction from the media group and the press fraternity was one of anger and outrage, the cause for justice substantially failed after a patch-up between the feuding sections of the family. Even while the investigation was transferred to the CBI, the political system was working to save the party’s hirelings. Most witnesses turned hostile, the trial judge rejected even photographic and videographic evidence on technical grounds, and the CBI failed to bring home the guilt of the assailants.

The High Court has noted that among the eye-witnesses who shied away from deposing in favour of the prosecution were Dinakaran’s own reporters and photographers, other journalists who covered the event and many police officers who were at the spot while the protest was turning violent and dozens of party cadre were gathering there with lethal intent. It has made a dark but possibly apposite comparison with the Best Bakery case, in which a key witness turned hostile and it was later revealed she had lied out of fear for her life. The Bench has pulled up the trial judge for “manifest perversity” in his treatment of evidence, especially in rejecting on flimsy grounds the testimony of forensic experts that there was no sign of manipulation or tampering in the photographs and footage presented in court. It was well known to the public that Mr. Alagiri wielded enormous clout at that time and that his supporters were involved in the incident. It is indicative of the atmosphere of intimidation that prevailed that even journalists who covered the incident denied their presence. While the court has prevented a miscarriage of justice in this case, it is a sordid truth that the state of affairs may continue in future too, unless amoral political leaders and pliant police officers mend themselves.

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VOCABULARY

1) relevant

Meaning : closely connected or appropriate to what is being done or considered(adj).

Synonyms : applicable

Antonyms : improper

Example : “what small companies need is relevant advice”

2) implement

Meaning : a tool, utensil, or other piece of equipment that is used for a particular purpose.

Synonyms : appliance

Antonyms : exempt

Example : “garden implements”

3) enacting

Meaning : make (a bill or other proposal) law(v).

Tamil Meaning : மேம்படுத்தியது

Synonyms : execute

Antonyms : prevent

Example : “legislation was enacted to attract international companies”

4) impact

Meaning : the action of one object coming forcibly into contact with another.

Tamil Meaning : தாக்கம்

Synonyms : crunch

Antonyms : failure

Example : “there was the sound of a third impact”

5) incur

Meaning : become subject to (something unwelcome or unpleasant) as a result of one’s own behaviour or actions.

Synonyms : arouse

Antonyms : forfeit

Example : “I will pay any expenses incurred”

6) precision

Meaning : the quality, condition, or fact of being exact and accurate(n).

Synonyms : rigor

Antonyms : disregard

Example : “the deal was planned and executed with military precision”

7) enactment

Meaning : the process of passing legislation.

Synonyms : depiction

Antonyms : neglect

Example : “the enactment of equal pay legislation”

8) pile

Meaning : a heap of things laid or lying one on top of another.

Synonyms : assortment

Antonyms : ditch

Example : “he placed the books in a neat pile”

9) estimates

Meaning : roughly calculate or judge the value, number, quantity, or extent of.

Tamil Meaning : மதிப்பீடுகள்

Synonyms : estimation

Antonyms : ignorance

Example : “the aim is to estimate the effects of macroeconomic policy on the economy”

10) resolve

Meaning : settle or find a solution to (a problem or contentious matter)(v).

Synonyms : firmness

Antonyms : wavering

Example : “the firm aims to resolve problems within 30 days”

11) nexus

Meaning : a connection or series of connections linking two or more things.

Synonyms : core

Antonyms : exterior

Example : “the nexus between industry and political power”

12) hostile

Meaning : showing or feeling opposition or dislike; unfriendly.

Synonyms : adverse

Antonyms : aiding

Example : “a hostile audience”

13) gratifying

Meaning : give (someone) pleasure or satisfaction(v).

Tamil Meaning : திருப்திப்படுத்த

Synonyms : enchant

Antonyms : depress

Example : “she was gratified to see the shock in Jim’s eyes”

14) perverse

Meaning : contrary to the accepted or expected standard or practice(adj).

Synonyms : wicked

Antonyms : agreeable

Example : “in two general elections the outcome was quite perverse”

15) acquittal

Meaning : a judgement or verdict that a person is not guilty of the crime with which they have been charged(n).

Synonyms : clearance

Antonyms : hiring

Example : “the tr ial resulted in an acquittal”

16) allegiance

Meaning : loyalty or commitment to a superior or to a group or cause.

Synonyms : adherence

Antonyms : dishonor

Example : “those wishing to receive citizenship must swear allegiance to the republic”

17) claimed

Meaning : formally request or demand; say that one owns or has earned (something).

Synonyms : assert

Antonyms : abandon

Example : “if no one claims the items, they will become Crown property”

18) fraternity

Meaning : a group of people sharing a common profession or interests.

Synonyms : sorority

Example : “members of the hunting fraternity”

19) outrage

Meaning : an extremely strong reaction of anger, shock, or indignation(n).

Synonyms : violence

Antonyms : favor

Example : “her voice trembled with outrage”

20) substantially

Meaning : to a great or significant extent.

Tamil Meaning : கணிசமாக

Synonyms : essentially

Antonyms : slightly

Example : “profits grew substantially”

21) feuding

Meaning : be engaged in a prolonged and bitter quarrel or dispute(v).

Synonyms : bickering

Antonyms : accord

Example : “Hoover feuded with the CIA for decades”

22) hirelings

Meaning : a person employed to do menial work.

Synonyms : aide

Example : “the poorly paid hirelings in their shabby clothes”

23) deposing

Meaning : remove from office suddenly and forcefully.

Synonyms : dismiss

Antonyms : allow

Example : “he had been deposed by a military coup”

24) prosecution

Meaning : the institution and conducting of legal proceedings against someone in respect of a criminal charge.

Synonyms : pursuit

Antonyms : defeat

Example : “the organizers are facing prosecution for noise nuisance”.

25) cadre

Meaning : a small group of people specially trained for a particular purpose or profession(n).

Synonyms : organization

Antonyms : edge

Example : “a cadre of professional managers”

26) intent

Meaning : determined to do (something).

Tamil Meaning : நோக்கம்

Synonyms : decided

Antonyms : flexible

Example : “the government was intent on achieving greater efficiency”

27) apposite

Meaning : apt in the circumstances or in relation to something.

Tamil Meaning : தகுதியான

Synonyms : germane

Antonyms : inappropriate

Example : “an apposite quotation”

28) revealed

Meaning : make (previously unknown or secret information) known to others.

Synonyms : announce

Antonyms : conceal

Example : “Brenda was forced to reveal Robbie’s whereabouts”

29) flimsy

Meaning : insubstantial and easily damaged.

Synonyms : decrepit

Antonyms : heavy

Example : “a flimsy barrier”

30) tampering

Meaning : interfere with (something) in order to cause damage or make unauthorized alterations.

Tamil Meaning : சேதப்படுத்திய

Synonyms : meddle

Antonyms : improve

Example : “someone tampered with the brakes of my car”

31) enormous

Meaning : very large in size, quantity, or extent(adj).

Tamil Meaning : மகத்தான

Synonyms : excessive

Antonyms : miniature

Example : “enormous sums of money”

32) indicative

Meaning : serving as a sign or indication of something.

Synonyms : ominous

Antonyms : concealing

Example : “having recurrent dreams is not necessarily indicative of any psychological problem”

33) intimidation

Meaning : serving as a sign or indication of something.

Synonyms : suggestive

Example : “having recurrent dreams is not necessarily indicative of any psychological problem”

34) prevailed

Meaning : prove more powerful or superior.

Synonyms : prove

Antonyms : forfeit

Example : “it is hard for logic to prevail over emotion”

35) sordid

Meaning : involving immoral or dishonourable actions and motives; arousing moral distaste and contempt(adj).

Synonyms : nasty

Antonyms : reputable

Example : “the story paints a sordid picture of bribes and scams”

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THE HINDU EDITORIAL : MARCH 25, 2019

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